Question on proxy

Started by DianeW • 3 replies • 1652 views

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DianeW (Maryland)
Posts: 147

Posted:

I am the treasurer of a 146 single home development and want to have a reserve fund established with an increase in dues and our annual board meeting is coming up. The problem is we have to send out proxies just to get a quorum to hold the meeting and we are having major issues trying to decide how to do this via proxy. The secretary is very opposed to sending out a general proxy with a single question asking to establish a reserve fund wish the increase in dues of $80 per year. She also does not want any question addressed on the proxy nor does she want nominees for board members addressed because we haven't completed that process yet either. All four current officers are willing to stay on as we work well together and have started getting things accomplished. (And we have always done the nominating committee thing at the last minute but we never had to send out proxies so now we know). How should we handle this proxy?

Please help us solve this dilemna.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Diane,

Proxies are either a general proxy or a directed proxy.

For a general proxy statement a simple form can be used appointing someone as a proxy.

For a directed proxy statement, the form should include everything that is being voted on at the meeting. Therefore, if directors are being voted on, then a list of candidates should be identified on the form as well as blank spaces for write-in candidates.

If you are going to send out a directed proxy form, the Board should also include both sides of the issues in the mailing. This way, the member can make an informed choice. The easiest way to get an opposing view (if one doesn't exist within the Board) is to ask a member to write it.

Personally, I have found that when an increase in fees are being discussed at a meeting and advertised ahead of time, there is rarely any problem in getting a quorum.

Attached is a word document (modified to remove names) that shows a directed proxy form we used for our last Annual Meeting. However, you should check your States Corporate and HOA laws to see if anything specific must be included.

Hope this helps,

Tim

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DonnaS (Tennessee)
Posts: 5,671

Posted:

Diane,

From what you posted, I know that you have not addressed this properly. Florida Proxies are considered "limited" and the purpose of the proxy plus the date of the meeting must be on the proxy.

IF you want this used to establish a quorum, then you must state that on the proxy. Establishment of a Reserve Fund must be voted on by the membership.

Elections is a total other subject and cannot go on that proxy. Those are ballots to be sent out. You need to sort out and seperate a couple of these decisions. Some is voting, some is amendment.

DianeW (Maryland)
Posts: 147

Posted:

Yes, we are trying to tackle all issues on one piece of paper, the proxy. Out of our 146 lots, only about 100 are members in good standing, and of those 100, only approx 36 voting lots reside here. The rest are scattered far and wide. That makes us clearly in the minority. We definitely need proxies to hold the meeting and our covenants read we need 60% approval for an increase in dues. We will do proxies to obtain quorum and discuss the reserve fund at the annual meeting and then follow that up with another mailing to membership to vote on the reserve fund.

Thank you for your input!

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